In the Minnesota Addendum to the Stretch Zone Franchise Agreement, what section of the Franchise Agreement is amended regarding initial fees?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum to Franchise Agreement is signed on between Stretch Zone Franchising, LLC, a Florida limited liability company ("us" 'we" and "our") and ("you" or "your") to amend the Franchise Agreement as follows:
- Section 3.1 of the Franchise Agreement is amended as follows:
INITIAL FEES
All fees paid to the Franchisor by the Franchisee, including payments for goods and services received from the Franchisor before the business opens, shall be deferred pending satisfaction of all of the Franchisor's pre-opening obligations to the Franchisee.
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, the Minnesota Addendum to the Franchise Agreement amends Section 3.1 of the Franchise Agreement, which pertains to initial fees. Specifically, the addendum addresses the timing of when these fees are to be paid.
The addendum stipulates that all fees paid to Stretch Zone by the franchisee, including payments for goods and services received before the business opens, will be deferred. This deferral is contingent upon Stretch Zone fulfilling all of its pre-opening obligations to the franchisee. This means that the franchisee is not required to pay these initial fees until Stretch Zone has met its responsibilities in preparing the franchisee to open their location.
For a prospective Stretch Zone franchisee in Minnesota, this amendment offers a significant financial benefit. It alleviates the upfront financial burden by delaying the payment of initial fees until Stretch Zone has provided the necessary support and resources to get the business ready for opening. This can help with cash flow management during the initial stages of setting up the franchise. It also provides some assurance that the franchisee will only pay once Stretch Zone has fulfilled its obligations.